Ginnie Mae Revises HMBS Pooling Eligibility Requirements

Ginnie Mae recently issued All Participant Memorandum (APM) 23-11, revising the HECM Mortgage Backed Security (HMBS) requirements to allow securitization of multiple participations related to a particular HECM in any one issuance month.  Ginnie Mae noted in the APM that the program revisions are intended to reduce liquidity pressures on HMBS Issuers and ensure the HECM program remains viable.

Under the revised guidelines, when pooling additional participations for a particular HECM in a particular month, the APM provides that those participations must meet the following requirements:

• Participations must be sequential;
• Only one participation per HECM per HMBS is permitted;
• Any prior pools containing participations on a given HECM must have been issued before additional participations can be submitted; and
• When the participation is the result of a HECM disbursement occurring on a day other than the first of the month, it must meet the additional specific requirements outlined in APM 23-11.

Note the revised HMBS Pooling requirements went into effect on October 1, 2023.